Bitcoin (BTC) Trembles in Extreme Fear: Are Bears Triggering a Drop Below $100K?
Bitcoin is trading near $103.1K amidst extreme fear in the market. Market sentiment is ambiguous as the price oscillates with bearish dominance, reflecting a downtrend. The Fear and Greed Index is at 15, indicating extreme fear. Despite slight recovery attempts, Bitcoin struggles to escape the weak zone, trading between $100,836.61 and $105,297.23 within the last 24 hours, with a 0.22% loss and a daily trading volume surge of 18.06% to $72.64 billion. Technical analysis shows a negative outlook with MACD below the signal line and CMF at -0.07, hinting at mild selling pressure. RSI at 42.13 reflects weak momentum, leaning neutral to slightly bearish. BBP reading of -1,819.29 suggests strong bearish control, and further slides could push the price below current levels, unless momentum shifts significantly upward.
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Bitcoin Price Update and Market Sentiment
Bitcoin is currently trading near the $103.1K zone, reflecting the market's extreme fear. The sentiment across crypto tokens remains choppy, causing prices to move in both directions and presenting an ambiguous picture. Bears maintain control, leading to a loss of momentum. Meanwhile, Bitcoin continues to slide, illustrating an intense downtrend and entering the extreme fear zone as the Fear and Greed Index stands at 15.
Price Movements and Key Levels
The BTC price has experienced multiple tests and faced fluctuations but continues to face rejections. Recovery attempts remain stuck in the weak zones. During early trading hours, Bitcoin hit a high of $105,297.23, but bearish pressure forced it down to a low of $100,836.61. At the time of reporting, Bitcoin traded at $103,133.60, reflecting a minor loss of 0.22%. Daily trading volume surged by 18.06%, reaching $72.64 billion, while the market witnessed a liquidation of $181.75 million worth of Bitcoin in the last 24 hours.
Technical Indicators and Market Analysis
The Moving Average Convergence Divergence (MACD) indicator remains below the signal line, signaling a negative outlook. Both lines being below the zero line confirms a weak, continuing downtrend unless upward momentum emerges. Additionally, the Chaikin Money Flow (CMF) reads -0.07, indicating slight selling pressure. While bearish sentiment persists, the trend remains mild as long as values don't drop below -0.1.
Short-Term Trading Dynamics
On the four-hour chart, Bitcoin trades with bearish support, with a retracement potentially targeting the $103,120 support range. If a downside correction picks up, a death cross could lead the price to $103,105 or lower. Conversely, if Bitcoin reverses, the next target could be the $103,145 resistance. A highly bullish scenario could lead to a golden cross, pushing the price toward $103,160 or its recent highs.
Momentum and Sentiment
The daily Relative Strength Index (RSI) is at 42.13, showing a neutral to slightly bearish sentiment. The asset is neither overbought nor oversold, but the weak momentum suggests that the slump may persist unless the RSI rises above 50. Further, the Bull Bear Power (BBP) indicator reads -1,819.29, confirming that bears dominate the market with selling pressure outweighing buying momentum, contributing to the continued downtrend.